If you like to drive newer, safer, more reliable cars, trucks, or SUVs, but prefer not commit to a sizeable down payment every few years, and also don’t drive an excessive amount of miles yearly, then a new car lease could be better for you. Leasing is ideal for those who would prefer to avoid the hassle of buying and selling each time they want to drive a new car.
On the other hand, if you prefer long term relationships with a greater sense of commitment and ownership, then buying should be what’s better for you. Car-buying is typically best for consumers who don’t mind driving the same car, truck, or SUV for more than five years or even until the vehicle is no longer suited for the highway.
Being aware of the pros, cons, and overall benefits of buying vs leasing a car or truck is imperative. Be sure to contemplate vehicle ownership, monthly payments, repair costs, and potential savings when considering the best new car or truck financing type for you.
When considering vehicle financing, new car or truck ownership absolutely comes with many well-known advantages, most associated with complete ownership of the vehicle. You may not realize, but, there are also some great advantages to leasing, as well. It’s important to consider all financial aspects including buyout payments, down payment, monthly payments, term length, interest rate, depreciation, and maintenance & repair costs, before making a decision. A meticulous audit of your current financial situation, future needs, and your preference for commitment, will likely ensure that you make the optimal choice between leasing and buying a new car, truck, or SUV.
Vehicle lease payments are often less expensive in comparison to auto loan and car financing payments as the typical lease layout is pretty much renting with the option to purchase at the end of your lease term. Just consider when leasing that you’ll need a higher credit score, and will be asked to carry comprehensive and collision insurance, though the same can be said for the better rate auto loans. Although it can increase monthly payments, it is also best to get a model with the features you want or need, as personal satisfaction is often priceless.
Auto leases often include regular vehicle maintenance & repair. It is important to keep this in mind when projecting monthly costs of ownership vs leasing. No matter which make and model you select, mechanic bills are an uncertain cost that can rapidly add up. And for those who aren’t certified auto mechanics with a hydraulic jack and full toolset in the garage, leasing could be the best option for peace of mind.
In general, a new car, truck, or SUV lease saves money in the short term with lower monthly payments, while buying earns you a long term investment, meaning outright ownership of the value of the car or truck at the time it is traded, sold, or paid-off. For best value on a lease, avoid lease return fees for going over mileage, terminating the vehicle lease early, or putting on excessive wear and tear. For your best investment on a financed/purchased vehicle, you can pay it off quickly and also avoid excessive wear and mileage.
|Ownership||No Ownership||Pride of Ownership|
|Down Payment||Smaller Down Payment||Larger Down Payment|
|Monthly Payment||Smaller Monthly Payments||Larger Monthly Payments|
|Maintenance & Repair Costs||Typically Included||Not Included|
|Savings/Investment||Short Term Savings||Long Term Investment|
|Finance Term||Approx. 2-4 Years||Approx. 3-6 Years|
|Pre-Owned Vehicles||Not Available||Available|
|Vehicle Customization||Not Available||Available|
|Poor Credit Financing||Not Available||Available|
Baron MINI knows that choosing the right MINI car and financing option is never easy. Our team of experienced MINI lease and finance specialist are on hand to help you make the right choice. Visit us online, by phone, or in-person at our dealership location near Kansas City, KS. We look forward to serving you.